Packaging group Smurfit Kappa has reported earnings before tax and depreciation of €1.24 billion for its full financial year, roughly in line with the previous year's numbers.
Shares in the company moved sharply lower in Dublin trade today.
Revenue for the year to the end of December was 5% higher at €8.56 billion and the company said its final dividend was up 12% to 64.5 cent per share.
But the company's pre-tax profits were down 12% to €576m from €654m the previous year amid generally higher raw material costs and "adverse" currency movements.
The company's chief executive Tony Smurfit said the company continues to see currency volatility, wage inflation as well as higher energy and other input costs.
But he added that 2018 has seen the continuation of good demand in Europe, further input cost recovery and signs of improvement in its Americas business.
"The group has exciting plans in place to continue our development and sustain our industry leadership into the future," Mr Smurfit added.
Smurfit Kappa said its European division saw a 3% increase in full year EBITDA to €955m, despite increased raw material input costs and currency impacts.
The company noted that its box volumes were up 5% in the fourth quarter, with growth broadbased across most sectors and countries, with strong growth especially in the company's e-commerce customers.
Meanwhile, input cost recovery in corrugated pricing continued to progress in the fourth quarter with further progress expected this year.
Smurfit Kappa said that the price of recovered fibre last year rose by 13% which impacted its paper division by about €80m. The company said expects a longer term upward trend in recovering fibre pricing to continue.
With demand for kraftliner containerboard remaining robust, the company announced another price increase of €60 a tonne in December, which will be implemented this month.
Meanwhile, price increases of over €100 a tonne in the recycled containerboard business were maintained, buoyed by strong demand.
Smurfit Kappa said its Americas division reported an 8% fall in EBITDA for the year to December due to a number of factors.
These included increased export prices for containerboard from the US into Latin America, increased recovered fibre costs, adverse currency movements and adverse natural events.
